The Supply Cut will work... it needs some more time to tighten the market
Comments
curt.michael.35
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Right! Good to know that adding 520 rigs has nothing to do with the equation. Perhaps you'd like to guess at what will happen when production catches up to the additional rigs since production always lags rig count? It's also the reason why the EIA has production above 10M in 2018 from current 9.3M which is already "only" 700,000 up from last year. You won't see $60 never mind $80 and you'll see $30's before you see $60 in 2018.
ChristianSchramm
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@Curt.michael.35, No. The lowest Oil can go (from here) is $39-40. -- The US will not drown the World in Oil. This notion/idea is Wrong on so many levels. Especially when it comes to the Long-Term Price Analysis. US Shale Producers don't seem to care about Depletion Rates and grossly under-estimate their true service costs. -- In Summer of 2018, mark my Words, you will see Oil at $80.
caothecongtoan71403
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you mean oil will go down to 39
ChristianSchramm
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@caothecongtoan, That represents the ABSOLUTE lowest it can go. -- It will, most likely - bounce back up from $43.